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Challenge
Allyis, a privately held company
specializing in large-scale web site publishing and content
management solutions, was outgrowing their downtown Bellevue
headquarters. The goal was to find a high-quality, professional and
well-maintained building that would reflect Allyis’ business and
reputation. Maintaining a downtown Bellevue presence was a
consideration though the current economics and parking constraints
had become more challenging than the value of a high quality
suburban office complex. A separate challenge was quantifying the
correct near and long term square footage, a factor of the company’s
recent growth and future business opportunities.
Strategy
A local architecture firm was retained early on to assist in determining
the square footage requirement; not only the size required at
commencement but also as far into the future as foreseeable. Once
identified, site selection commenced and locations were identified. The
preferred location, by far, was the site eventually selected, though
this would only happen after negotiating almost a complete transaction
and having the deal fall apart. The subject space was occupied by a
tenant with a remaining long term lease that had run into financial
difficulties and thus had agreed in principle to a buyout with the
landlord. The transaction was predicated on this tenant honoring its
agreement, which, when the time came, they did not. At the eleventh
hour the existing tenant balked on their agreement and Allyis’ lease
transaction was dead. A new search was begun immediately, identifying a
far-from-perfect office in Totem Lake, but because of the lack of
quality product with immediate occupancy, the location was determined
the next best alternative. Once again, the transaction was negotiated
though this time we encountered challenges with the landlord’s proposed
securitization. Third time’s the charm- we were hoping. We identified
a new location, not far from the client’s preferred first choice, and
again terms were negotiated. Three quarters of the way through
these negotiations Plaza at Yarrow Bay came back to us, having agreed
upon terms for a termination with their existing tenant. The landlord
was eager to conclude our original transaction. Allyis now had leverage,
as we were engaged in negotiations with another building, and through
this we were able to negotiate a much stronger lease transaction than
the initial lease negotiations.
Result
Turnkey tenant improvements, a staggered take-down schedule to minimize
the client’s upfront occupancy cost and match the client’s revenue
growth, rights on additional expansion space, exterior building signage
facing SR-520, and adequate and affordable parking for employees and
visitors.
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“Jason helped us secure our first
choice for office space despite working with us during a time of
rapidly rising costs and low vacancies. Over the course of several
months he guided us through space planning exercises and contract
negotiations, providing timely insight and recommendations along the
way. Jason’s knowledge was especially valuable to me, as it was my
first time through this process; his patience and persistence
definitely paid off for Allyis.”
Suzette McClintock
Chief Business Officer
allyis Technology
Projects & Personnel |
